Is Fiat's tank half-full of half empty? The General Court's decision in Luxembourg v. Commission (T-755/15)

Resource Information

The work Is Fiat's tank half-full of half empty? The General Court's decision in Luxembourg v. Commission (T-755/15) represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Is Fiat's tank half-full of half empty? The General Court's decision in Luxembourg v. Commission (T-755/15)

Creator

• Buriak, S
• Lazarov, I

Subject

• State aid
• APA
• transfer pricing
• equity capital
• ECJ case law

Language

eng

Summary

This article examines the recent decision by the General Court on the case of State aid concerning Fiat (T-755/15). Although the authors agree with the ultimate outcome of the decision, they believe that the General Court erred in its reasoning. First, it should not have endorsed that there are transfer pricing rules inherent in article 107 of the TFEU and outside of the domestic reference framework. Second, the General Court was wrong in accepting the accounting equity as an appropriate profit level indicator when return on equity is applied to an entity that performs financing activities. Finally, the General Court should have recognized the principle relevance of the neutralization argument (i.e. saving taxes in one jurisdiction does not necessarily entail an advantage on the group level)

Citation source

In: International transfer pricing journal. - Amsterdam. - Vol. 27 (2020), no. 1 ; p. 71-77

Geographic coverage

• European Union
• Europe

Language note

English